High-Volume Sellers On eBay, Craigslist Can Look Forward To New Tax Form For 2011

If you tend to move a lot of merchandise on eBay or Craigslist, you should know that the IRS wants a share of those earnings. If in 2011 you sell more than $20,000 worth of goods and have more than 200 transactions, then come early 2012 you’ll receive a shiny new flavor of 1099 form called a 1099-K, and you’ll have to pay up. If you’re an infrequent seller, where your eBay or Craigslist transactions more closely resemble a garage sale than a virtual storefront (and especially if you sell items at a loss), you probably don’t have to worry.

“IRS wants a cut of online sales on eBay, Craigslist” [Washington Post]